ISLAMABAD: Pakistan expects privatisation deal of Pakistan International Airlines (PIA) to reach financial close by the end of April, officials told lawmakers Monday, saying a consortium, led by Arif Habib, has already begun searching for a new chief executive and management team for the national carrier.
The update came during a meeting of the Senate Standing Committee on Privatisation, chaired by Afnanullah Khan held here, where officials briefed lawmakers on the progress of the airline’s privatisation, its assets, financial performance and employee welfare arrangements.
Briefing the panel, Usman Bajwa, secretary of the Privatisation Commission, said the investor consortium has already set up a new entity named PIA Equity Ltd, which will include all shareholders involved in the acquisition. He added that Fauji Fertiliser Company is expected to be formally included in the consortium after approval from the federal cabinet committee.
Bajwa said most preconditions for the transaction have been completed and two working groups are currently overseeing the remaining requirements and reporting to a central steering committee, adding that no major hurdle remains in the completion of the privatisation deal.
During the meeting, the senate panel also raised concerns over low revenues at the Pakistan Minerals Development Corporation (PMDC) and heavily discounted land leases to private firms. Lawmakers said valuable mineral assets appear underutilised. Officials briefed lawmakers and said that PMDC holds extensive assets, including 17,363 acres of coal mining areas in Degari, Sor Range and Lakhra, 22,737 acres of salt mineral reserves including deposits in Khewra, and about 7,000 acres of soapstone reserves. Mineral exploration is also underway across 246,753 acres in Pishin and Zhob.
Lawmakers questioned leases granted to private firms, including 1,120 kanals leased for about Rs500,000 annually and 56 kanals for Rs113,780 per year, calling the rents far below market value and directing officials to review agreements.
The PMDC officials said coal mining leases in Balochistan are issued for 30 years, with the corporation earning Rs2,500 per ton of coal, while costs can reach around Rs17,000 per ton, limiting profitability.
